Instructions: Determine the answer for each of the following independent questions. You will need to use Excel for the calculations. Answers can be rounded to the nearest dollar or nearest 1/10th of a percent. All work must be shown to be given credit.

B You are considering purchasing 100 shares of stock in Big Money Company. You expect the stock to pay annual dividends of $910 at the end of each year, and to be worth $80,000 at the end of ten years, when you plan to sell the stock. The investment costs $42,000 and you need an annual return of 7.50%. What is the net present value of this investment? Note: This is a standard net present value problem.

Ba) Based on your calculations, will the total return on the investment be at least 7.50%?